Canada will purchase 12 new submarines, with South Korean shipbuilder Hanwha Ocean currently competing against German manufacturer TKMS for the lucrative contract.
On Monday, pomp and ceremony were on full display at CFB Esquimalt as the Royal Canadian Navy highlighted the KSS-III class submarine program intended to replace the aging Victoria-class vessels.
“We are investing in new submarines, new destroyers, and new supply ships,” said Cdr. David Patchell of Maritime Forces Pacific.
That investment will come with the need for more people and infrastructure.
“We have already started infrastructure upgrades right here in Victoria and expect to spend over $10 billion over the next decade,” said Patchell.
The funds will be used to build jetties, training facilities, warehouses, and maintenance buildings needed for the expanded Navy. Over the next 10 years, the Commander of Maritime Forces Pacific says CFB Esquimalt will be completely transformed.
Esquimalt Mayor Barb Desjardins says it is an exciting time for the community and that investment in both Esquimalt and the base over the past few years has already been significant.
“What is coming in is going to be exponentially greater,” said Desjardins.
Federal properties pay payments in lieu of taxes (PILT) to the municipalities in which they are located. In British Columbia, this is calculated between BC Assessment and the federal government. Essentially, when there is growth through development on the base, the government will issue Esquimalt a larger PILT payment each year.
Currently, roughly 20 per cent of Esquimalt’s revenue comes from federal properties, particularly CFB Esquimalt.
“Over time, we think that the PILT revenue will increase,” said the mayor.
The west coast’s share of the 12 new submarines will be housed on the Colwood side of the base, representing a substantial gain for that community as well.
Desjardins says there are also concerns that will come with a larger military workforce.
“Transportation around the region,” said the mayor.
She said light rail transit could help address the issue. There is also the ongoing shortage of housing in the region, which is why Esquimalt has chosen to increase density for buildings near the base.
Whether Canada chooses the South Korean or German submarine design is still unknown, but one thing is certain: a new fleet is coming to the west coast in the coming years, transforming CFB Esquimalt and surrounding communities.
“Canada is a maritime nation. We have the longest coastline in the world. We need to reinvest in our Navy, and we are doing that,” said Patchell.

